Ford Motor Company (F - Free Report) is recalling roughly 200 of its 2017-18 GT vehicles due to hydraulic fluid leakage. Fluid leakage from valves placed under the car’s rear part may catch fire, when making contact with exhaustion.
Roughly 194 of the affected vehicles are in North America, with 176 in the United States and 18 in Canada. All the vehicles were manufactured between December 2016 and July 2018. In Germany, one incident associated with this fault was reported, with no injuries.
Dealers will update software to the vehicle’s controller, thus, eliminating risk of extreme pressure in the valve. If required, in a few cars, a hydraulic check valve will be installed, and o-rings and filter will be replaced.
Ford Motor Company Price and Consensus
With a price of about $400,000, Ford’s GT is counted among expensive vehicles offered by the company. The model’s production is limited to only around 250 vehicles a year. Praised for its engineering and performance, GT has 3.5-liter V6 EcoBoost engine and top speed of 216 miles an hour.
This is not the first recall that Ford has announced in the past few months. In September, the company announced a recall of 2-million F-150 pickup trucks in North America. Problematic seat belts in pickup trucks, which can result in fire, led to the recall.
In the past six months, Ford’s stock has lost 22%, underperforming 12.4% decrease recorded by the industry it belongs to.
Zacks Rank & Key Picks
Ford currently carries a Zacks Rank #4 (Sell). A few better-ranked stocks in the auto space are Allison Transmission Holdings, Inc. (ALSN - Free Report) , AutoZone, Inc. (AZO - Free Report) and Horizon Global Corporation (HZN - Free Report) . AutoZone and Horizon Global currently carry a Zacks Rank #2 (Buy), while Allison Transmission sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
AutoZone has an expected long-term growth rate of 12.2%. Over the past six months, shares of the company have gained 26.2%.
Horizon Global has an expected long-term growth rate of 2.7%. Shares of the company have increased 1.9% over the past three months.
Allison Transmission has an expected long-term growth rate of 10%. Shares of the company have rallied 25.5% over the past six months.
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